TaxTMI 
TaxTMI 
1997 (7) TMI 246
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....n relates to the applicability of Notification No. 75/86. Appellants had cleared certain parts and accessories of motor vehicles, tractors (including agricultural tractors and trailers) falling under various Tariff items and claimed the benefit of Notification No. 75/86 as amended by Notification No. 312/86. The appellants claimed that they had used parts and accessories of motor vehicles, tractor and trailers for manufacturing internal combustion (I/C) engines in their factory. I/C engines which were required for purposes other than motor vehicles were used by them in marine I/C engines and industrial I/C engines. In the initial adjudication proceedings the Assistant Collector held that for claiming benefit of Notification No. 75/86 as ame....
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....ondition No. (i) of the Proviso to Notification No. 75/86 which read as under :- "It is proved to the satisfaction of an Officer not below the rank of an Assistant Collector of Central Excise that the said goods are intended to be used as original equipment parts in the manufacture of internal combustion engines falling under Chapter 84 of the said schedule". He contended that what was required to be proved was only that parts and accessories are intended to be used as original equipment parts in the manufacture of internal combustion engines falling under Chapter 84. He contended that the Notification did not envisage that the items procured under the said Notification should be used only for automotive I/C engines falling under Chap....
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...."Exception to parts and accessories of motor vehicles, tractors and trailers, falling under Chapters 40, 48, 73, 84 or 85. - In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, and in supersession of the notifications of the Government of India in the Ministry of Finance (Department of Revenue) No. 249/82-Central Excises, dated the 1st November, 1982, the Central Government hereby exempts parts and accessories of motor vehicles, tractors (including agricultural tractors) and trailers, falling under Chapters 40, 48, 73, 84 or 85 of the Schedule to" the Central Excise Tariff Act ,1985 (5 of 1986) and specified in the Table annexed hereto from the whole of the duty of excise leviable thereon under s....
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....o the satisfaction of an officer not below the rank of an Assistant Collector of Central Excise that the said goods are intended to be used as original equipment parts in the manufacture of internal combustion engines falling under Chapter 84 of the said Schedule; and (ii) in respect of such use elsewhere than the factory of production of the said goods, the procedure set out in Chapter X of the Central Excise Rules, 1944, is followed. 2. This notification shall come into force on the 28th day of February, 1986. [Notification No. 75/86-C.E., dated 10-2-1986 as amended by Notification No. 312/86-C.E., dated 20-5-1986]" 7. It will be seen from the opening part of the notification that the exemption covers parts and ....
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....er says that it has to be proved to the satisfaction of the officer concerned that the said goods are intended to be used as original equipment parts in the manufacture of internal combustion engines falling under Chapter 84. It is common ground that I/C engines are used not only in motor vehicles but also in marine engines and stationary engines like power generators. The argument advanced on behalf of the appellants was that condition (i) is satisfied so long as the use of the goods is intended as original parts in the manufacture of I/C engines falling under Chapter 84. This argument however, ignores the words " the said goods" occurring therein as a pre-condition. The expression"the said goods" refers specifically to parts and accessori....